western section forms part of the great plain called the Gran
Chaco (see Argentina), and is to a large extent unexplored.
Paraguay proper, or the country between the Paraguay and the
Paraná, is traversed from north to south by a broad irregular
belt of highlands, which are known as the Cordillera Ambaya,
Cordillera Urucury, &c., but partake rather of the character
of plateaus, and form a continuation and outwork of the
great interior plateau of Brazil. The elevation nowhere
much exceeds 2200 ft. On the western side these highlands
terminate with a more or less sharply defined edge, the
country sloping gradually up to their bases in gentle undulations
with open, ill-defined valleys; on the eastern side they
send out broad spurs enclosing deep-cut valleys, and the
whole country retains more of an upland character. The
tributaries that flow westward to the Paraguay are consequently
to some extent navigable, while those that run eastward
to the Parana are interrupted by rapids and falls, often of a
formidable description. The Pilcomayo, the largest western
tributary of the Paraguay, and an important frontier river,
is only navigable in its upper and lower reaches. From the
Asuncion plateau southwards, near the confluence of the
Paraguay and Parana, there is a vast stretch of marshy
country, draining partly into the Ypoa lagoon, amd smaller
tracts of the same character are found in other parts of the
lowlands, especially in the valley of the Paraguay. Many
parts of the country sloping to the Paraná are nearly covered
with dense forest, and have been left in possession of the
sparsely scattered native tribes. But the country sloping to
the Paraguay, and comprising the greater part of the settled
districts, is, in keeping with its proximity to the vast plains
of Argentina, grassy and open, though the hills are usually
covered with forest and clumps of trees are frequent in the
lowlands. Except in the marshy regions and along the rivers,
the soil is dry, porous and sandy.
Geology.—Little is known of the geology of Paraguay. A large part of the area is covered by Quaternary deposits, which completely conceal the solid foundation on which they rest. The hills and plateaus appear to be composed chiefly of the same sandstone series which in the Brazilian province of Rio Grande do Sul contains seams of coal, with plant remains similar to those of the Karharbari series of India (Permian or Upper Carboniferous). It is probable, also, that the Palaeozoic rocks of Matto Grosso extend into the northern part of the country.
Minerals.—The gold mines said to have been concealed by the Jesuits may have had no existence; and though iron was worked by F. S. Lopez at Ibicuy (70 m. south-east of Asuncion), and native copper, oxide of manganese, marbles, lime and salt have been found, the real wealth of the country consists rather in the variety and value of its vegetable products.
Climate and Fauna.—The year in Paraguay is divided into two seasons—" summer," lasting from October to March, and " winter," from April to September. December, January and February are generally the hottest months, and May, June, July and August the coldest. The mean temperature for the year seems to be about 75° or 76°; for summer 81°, for winter 71°. The annual rainfall is about 46 in., fairly well distributed throughout the year, though the heaviest precipitation occurs in August, September and October. The prevailing winds blow from the north or south. The south wind is dry, cool and invigorating, and banishes mosquitoes for a time; the north wind is hot, moist and relaxing. Violent wind storms generally come from the south.
The fauna of Paraguay proper is practically the same as that of Brazil. Caymans, water-hogs (capinchos), several kinds of deer (Cervus paludosus the largest), ounces, opossums, armadillos, vampires, the American ostrich, the ibis, the jabiru, various species popularly called partridges, the pato real or royal duck, the Palamedea cornuta, parrots and parakeets, are among the more notable forms. Insect life is peculiarly abundant; the red stump-like ant-hills are a feature in every landscape, and bees used to be kept in all the mission villages.
Population.—The great majority of the inhabitants are of Indian (Guarani) descent, with very slight traces of foreign blood. Civilization has not made much progress, and the habits of the people are more primitive than those in the more advanced neighbouring republics. As a general rule the Paraguayans are indolent, especially the men. Climatic conditions obviate the necessity of any superfluity of clothing. A cotton chemise, and a white mania wrapped in Moorish fashion over head and body, constitute the dress of the women; a cotton shirt and trousers that of the men. Boots and shoes are worn only by the upper classes. Goitre and leprosy are the only endemic diseases; but the natives, being underfed, are prone to diarrhoea and dyspepsia. The common language of the country is Guarani, although in a few districts Tupi is spoken. The country people as a rule understand a little Spanish, if living near any trading centre. " New Australia " is a pastoral and agricultural settlement, originally founded in 1803 by immigrants from Australia as an experiment in communism. The colony failed at first, and was reconstituted in 1894. The settlers numbered 161 in 1908. Immigration is on a small scale (1024 in 1908), but tends to increase; it is encouraged by the government, which seeks to divert to Paraguay some portion of the Italian labour immigrant into Brazil and Argentina. In 1908 the total foreign population numbered about 18,000, half of whom were natives of Argentina. The principal towns are Asuncion, the capital (pop. 1905, 60,259), Villa Rica (25,000), Concepcion (15,000) and Villa del Pilar (10,000); these are described in separate articles. Encarnacion on the Parana has a large transit trade.
Government.—The constitution of the republic was voted by a constituent assembly on the 25th of November 1870. Legislative power is vested in a Congress consisting of a Senate and a Chamber of Deputies, elected by universal manhood suffrage in the proportion of one senator for every 12,000 inhabitants and one deputy for every 6000. Every member of Congress receives a salary of about £200. The head of the executive is the president, chosen by an electoral college for four years, and only re-eligible after eight consecutive years. He is aided by a cabinet of five ministers, responsible to Congress. Should he die during his term, or otherwise become unable to fulfil his duties, the president is succeeded by the vice-president (similarly elected), who is ex officio chairman of the Senate. The highest judicial authority is the Supreme Court, which is empowered to decide upon the constitutional vahdity of acts passed by Congress; its three members are appointed for four years by Congress, subject to the approval of the president. There are five courts of appeal, and inferior tribunals in all the large towns. The civil and criminal codes at Argentina have been adopted, almost without change. For purposes of local administration the republic is divided into 23 counties (partidos), which are subdivided into communes.
Religion and Instruction.—Roman Catholicism is the established religion, but the constitution guarantees full liberty to all other creeds. Asuncion, the only bishopric in the state, is in the archiepiscopal province of Buenos Aires. Education is backward and was long neglected. By law it is free and compulsory, but in some districts the attendance of many children is impossible. In 1907 there were 554 primary schools with 41,000 pupils.
Defence.—In 1908 the standing army, including cavalry, infantry and artillery, numbered about 1150 men; and there were five government steamers used for transport and revenue purposes.
Finance.—The financial situation of Paraguay has been a source of anxiety for many years. In 1885, after interest had been unpaid for 11 years on bonds amounting to £1,505,400, an agreement was made for the issue of new scrip to the value of £850,000 in quittance of all claims for capital and arrears of interest, certain public lands being also ceded to the bondholders as compensation. In 1895 an arrangement was made for a reduction of the rate of interest, for the funding of the arrears, and for the creation of a sinking fund. The government were unable to meet their obligations under the new contract, and in 1898 the outstanding amount had risen to £994,600. Provision has now been made for the service of this foreign debt, and the authorities have been able regularly to meet the service of the coupons. The total outstanding on the 31st of December 1908 was £831,850. Besides the London debt, there are many other claims on Paraguay, including (1908) about £1,950,000 due to Brazil, about £2,500,000 due to Argentina, and an internal debt of £850,000. The guarantee debt due to the Paraguay Central railway exceeds £1,500,000; and the total indebtedness of the republic on the 31st of December 1908 may be estimated at £7,650,000.
The revenue is derived mainly from import duties, and the most important branches of expenditure are the salaries of public officials, the army, public instruction and debt. The estimated revenue and expenditure for the three years 1906–1908 are shown in the following table:—
